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Question: Sandhill Corporation recently needed to find temporary inventory storage space when transitioning from an old factory to a newly built factory within the same city. Sandhill signed a 10-month lease on a warehouse requiring monthly payments in advance of $15,000.
a. What is the nature of the lease assuming Sandhill follows IFRS 16?
Sandhill should classify the lease as___________
b. The entry for the first payment on May 1, 2020.
c. the entry for the first payment on May 1, 2020. Assume Sandhill followed ASPE.
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